SEK remains on the defensive so far – Danske Bank

Chief Analyst at Danske Bank Allan von Mehren keeps the negative view on the Swedish Krona in the next months.

Key Quotes

“The SEK is really on the defensive and the break above 10.10 takes us back to 2010”.

“Technically, the next resistance is just above 10.16 and then 10.20ish. While this move may not be completely related to fundamentals, we do see some worrying signs in the Q4 GDP figures, namely that gross investments fell and the positive contribution form housing investment almost vanished”.

“We think this is the beginning of a trend shift, where investments lead by housing will weigh on GDP growth already from the first quarter in 2018. This is one of the reasons why we have been and still are bearish on the SEK.”